“One benefit of the slowing of growth across the globe is that the costs of materials and components have remained stable,” noted Sindelar, “and we have so far experienced very little of the energy rationing that was expected to begin early this summer in China. However, we have begun to experience the anticipated increases in the Chinese labor costs.”“In a notable turn of events during the second quarter, we gained some momentum in demand for our telecommunications products following several quarters of lackluster order patterns in that end market,” continued Sindelar. “Unfortunately, Viasystems is not immune to the overall global softening of demand for electronic components, as we have seen orders flatten or modestly decline across all of our other end markets, and we are feeling more pricing pressures. Taken together, these trends cause us to temper our expectations for sales growth during the second half of the year. In order to provide our investors with some additional clarity on what to expect in our third quarter, given the DDi transaction, we will deviate from our traditional policies and offer revenue guidance of $325 million to $335 million.”
Viasystems Announces Second Quarter 2012 Results
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